Support & Resistance Trading & Candle Patterns
Support and resistance trading forms the backbone of technical analysis. These levels act as barriers. Price often bounces or breaks at them. Candle patterns add confirmation. They show buyer/seller battles at key zones. Support & resistance is a key element of classic technical analysis and one of the five pillars of volume price analysis. And when combined with support & resistance from both a price and volume based perspective will give traders and investors additional confidence in identifying whether a trend is likely to reverse or not.
Key Candle Patterns at Levels
Reversal patterns like hammers or shooting stars shine at support/resistance. A hammer at support signals buying pressure. Doji candles show indecision. Engulfing patterns indicate strong shifts. Volume price analysis (VPA) validates these—high volume on reversal candles confirms conviction.
Practical Application
Combine levels with patterns for better entries. Wait for candle close at support/resistance. Check volume for strength. Quantum indicators on NinjaTrader or MT5 highlight levels and patterns visually. Anna Coulling’s VPA approach ensures disciplined trades.
This method reduces false signals. Support/resistance with candle patterns, plus Quantum tools, builds consistent strategies. Master it for confident trading decisions.
Support & resistance is a key element of classic technical analysis and one of the five pillars of volume price analysis. And when combined with support & resistance from both a price and volume based perspective will give traders and investors additional confidence in identifying whether a trend is likely to reverse or not.
How Support and Resistance Works and Quantum Indicators to Enhance It
Support and resistance are foundational concepts in trading. They mark price levels where markets often pause, reverse, or break. Support acts as a floor—buyers step in. Resistance as a ceiling—sellers dominate. Volume price analysis (VPA) reveals why these levels hold. High volume at a level shows conviction.
The Psychology Behind Support and Resistance
Support forms where buyers previously overwhelmed sellers. Price tests the level. Volume rises on bounces—buying conviction. Resistance builds where sellers dominated. Price rejects highs on volume. These zones reflect market memory. Traders remember past battles.
VPA confirms strength. High volume at support signals accumulation. Low volume bounces warn of weakness—potential break.
Role Reversal: Broken Levels Flip
A key principle: Broken resistance becomes support. Broken support turns resistance. This “role reversal” offers setups. Price returns to test flipped levels. Volume on hold confirms new role.
Quantum Indicators for Support and Resistance
Quantum tools on NinjaTrader or MT5 enhance these levels:
- Volume Point of Control (VPOC): Highest volume price—strongest S/R.
- Camarilla Levels: Daily pivots for intraday S/R.
- Accumulation/Distribution: Spots building pressure at levels.
Use VPOC for major zones. Camarilla for finer intraday. VPA validates—high volume at Quantum levels shows real intent.
Practical Trading Tips
Identify levels on higher timeframes. Wait for price test. Confirm with volume—high on bounce/hold = entry. Low volume rejection = fade. Anna Coulling’s VPA approach with Quantum indicators turns S/R into disciplined trades.
Support and resistance guide price. Quantum tools make them visual and reliable. Apply VPA for conviction. Trade levels with confidence.
By Anna Coulling